TSX Reaches All-Time High: Discover 2 Undervalued Canadian Dividend Stocks

The Toronto Stock Exchange has reached an unprecedented peak, recovering from the initial impact of U.S. tariffs. Those investors who didn’t catch the upturn are now pondering which leading Canadian equities could remain underpriced and would be worthwhile to purchase in a self-managed portfolio. Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) focused on dividends.

Canadian Natural Resources

Canadian Natural Resources ( TSX:CNQ It has decreased by 18% in the last year. This decline is primarily because of dropping oil prices.

West Texas Intermediate (WTI) crude oil is currently trading around US$62 per barrel, down from US$80 observed this time last year. The decrease in 2024 has largely been attributed to reduced demand out of China along with increased output from non-OPEC nations such as the U.S. and Canada. Looking ahead into 2025, the ongoing drop in oil prices—where WTI recently dipped below US$57—is being linked mainly to concerns about an impending recession in the U.S., coupled with continued economic strain in China stemming from trade tariffs.

In the short term, market fluctuations are anticipated; however, contrarians may seize this opportunity to purchase CNQ shares when they're undervalued. The firm states that its break-even point for West Texas Intermediate crude stands at approximately $40 to $45 USD per barrel. Additionally, CNRL plays a significant role as a natural gas producer. Current prices for natural gas exceed those from much of last year, which helps compensate for reduced margins within the oil sector. Furthermore, CNRL aims to increase production of both oil and natural gas to enhance overall revenues.

In 2024, the board doubled the dividend twice, and they have already boosted the payout once in 2025, maintaining an unbroken record of 25 consecutive years of increasing dividends. Individuals purchasing shares of CNQ stock today will receive a dividend yield of approximately 5.5%.

Bank of Nova Scotia

Bank of Nova Scotia ( TSX:BNS The stock has shown growth over the last month, yet it remains approximately 7% lower than at the beginning of 2025.

The bank is undergoing a strategic shift aimed at allocating more of its capital investments to the United States and Canada over the next few years, with reduced emphasis on Latin America, where former leaders invested heavily in acquisitions over the last 20-30 years to establish a significant footprint.

In the previous year, Bank of Nova Scotia invested US$2.8 billion to obtain a 14.9% share in KeyCorp, an American local financial institution. Early this year, however, the bank decided to offload its activities in Colombia, Panama, and Costa Rica, which resulted in a loss amounting to roughly $1.3 billion. Perhaps as a consequence, the company’s stock experienced significant decline during the initial three months of the year. The apprehensions surrounding economic downturn caused by U.S. levies on Canada and Mexico—regions where Scotiabank operates extensively—further exacerbated matters for the firm.

The turnaround initiative may require considerable time before showing significant outcomes. Further disposals of assets within Latin America might happen, so stakeholders should monitor the valuations associated with these transactions closely. Regardless of this unpredictability, the equity appears to be undervalued at present.

The Bank of Nova Scotia continues to be highly profitable and boasts a strong capital base for making targeted investments in both the United States and Canada. Purchasing shares of BNS at this juncture allows investors to enjoy a dividend yield of 5.9%.

At the forefront of the best TSX dividend stocks, here’s what you should know.

CNRL and Scotiabank offer solid dividend payouts that are likely to increase further. Should you find yourself with available funds, consider adding these stocks to your watchlist.

The post TSX All-Time High: 2 Canadian Dividend Stocks That Remain Appealing appeared first on The Motley Fool Canada .

Newly Released! 5 Affordable Stocks Under $50 (Free Report)

Motley Fool Canada ' market-exceeding squad has recently unveiled a new FREE report highlighting five "bargain-bin" stocks available now at less than $50 per share.

Our group believes these five stocks are significantly underestimated, and most crucially, they have the potential to bring substantial wealth to Canadian investors who move swiftly.

Don’t miss this opportunity! Just click the link provided to secure your complimentary copy and learn about all five of these stocks right away.

Claim your complimentary 5-stock report today!

More reading

• Should This Dropping Canadian Bank by 8.5% Be Considered an Opportunity Worth Seizing?
• How I'd Construct a Stress-free Investment Portfolio With $7,000
• The Most Intelligent Energy Stock to Purchase with $500 Today
• How I'd Utilize $7,000 to Construct a Dividend-Growing Portfolio in My TFSA
• 1 Stunning Blue Chip Equity Dropping 10%, Ideal for Long-Term Investment

The Motley Fool endorses Bank of Nova Scotia and Canadian Natural Resources. The Motley Fool has a disclosure policy . Contributor Andrew Walker from Fool doesn't have any shares in the stocks discussed.